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UNITED INDIA INSURANCE CO. LTD v. T. RAJAN - MFA No. 1032 of 1996  RD-KL 896 (26 September 2006)
IN THE HIGH COURT OF KERALA AT ERNAKULAMMFA No. 1032 of 1996()
1. UNITED INDIA INSURANCE CO.LTD.
For Petitioner :SRI.A.A.MOHAMMED NAZIR
For Respondent : No Appearance
The Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN
O R D E R
THOTTATHIL B. RADHAKRISHNAN, JM.F.A. NO. 1032 OF 1996
Dated this the 26th day of September, 2006
This is an appeal by an insurer. The Tribunal found that the driver did not possess a valid licence. Applying the ratio of decision of the apex court in National 1Insurance Co. Ltd., vs. Swaran Singh (SC) (2004 (1) KLT 781), the appellant is entitled to reimbursment of the amount, on satisfaction of the award.
2. Yet another question raised is as to whether the Tribunal was right in imposing an addition of 2 per cent interest by way of penalty on the insurer if it does not satisfy the award within a period of two months, however, leaving it with the right to re-reimbursement only at a lesser rate of interest. May be that the Tribunal imposed such clause to ensure speedy recovery of the amount. But it may not have a good legal foundation. Under such circumstances, the direction in the impugned award that the insurer will pay interest at 13 per cent if it does not satisfy the award within 2 month will stand vacated and the insurer will be liable to pay interest only at 11 per cent per annam till date of payment. However, on such payment, the insurer M.F.A. NO. 1032 OF 1996 2 will be entitled to reimbursement from the insured-owner, in execution of the amount awarded as modified by this appellate award. This appeal is allowed to the above extent. No costs. THOTTATHIL B. RADHAKRISHNAN,
JUDGE.RV M.F.A. NO. 1032 OF 1996 3
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